The purpose of this artical is to probe deeply into Taoist epistemology. Because the ultimate goal of Taoist philosophy is transcendental "Tao", Taoismnegatively regards knowledge as derive from empirical subjectivity. Naturally Taoism is convinced that subjective knowledge cannot stand firmly. But, as a type of "perfect teaching", Taoism cannot eliminate or negate knowledge. In order to meet the perfect need of Taoist philosophy, Taoism also deals with knowledge tremendously well. That is to say Taoism has accomplished its "attachment ontology" which is about phenomenal knowledge. As for this "attachment ontology", "haditual-mind" acts as subjective recognition faculty of subject; and "8 categories" is spontaneous, and this pure formal concept comes from "habitual-mind" a priori. Thus, relative objectivity is derived from subjectivity of subject. And knowledge is positively established. However, "habitual-mind" is not the final source of knowledge. According to the ultimate of Taoist philosophy, "habitual-mind" is dialectically revealed and manifested on the basis of "the self-negation of Taoist-mind". Therefore "Taoist-mind" is the final source. Through "Taoist-mind" exist "non-attachment ontology", and "habitual-mind" comes into being through the self-negation of Taoistmind, so the "attachment ontology" of knowledge is adopted. In this way, a system of infinitely free "bi-level ontology" is accomplished. This is the ultimate explanation of knowledge by Taoism.